The Simply Good Foods Company Acquires OWYN
The Simply Good Foods Company (SGFC) is adding more muscle to its brand lineup.
The publicly-traded company announced today it will acquire Only What You Need (OWYN) for $280 million in a cash transaction from existing investor United Nutritional Brands, an affiliate of Purchase Capital LLC, and minority investors. Terms of the deal were not disclosed.
The deal brings the plant-based ready-to-drink protein shake brand under SGFC’s wing which includes Atkins and Quest Nutrition. Products range from bars, shakes and meals to snacks and confections. According to Circana, OWYN is the fastest growing shake brand on the market in terms of total MULO dollar sales for the 52-week period ending March 24, 2024.
“The acquisition of Only What You Need is strategically compelling as it brings a third, complementary brand to Simply Good Foods and further enhances our presence in the fast-growing RTD shake segment,” said Geoff Tanner, president and CEO of Simply Good Foods, in a press release.
Following the close of the deal, the OWYN team as well as president and CEO Mark Oliveri will join SGFC and continue to lead the brand. OWYN last raised a round of capital in 2022 to fuel a nationwide expansion and has raised approximately $10 million across multiple rounds to-date; OWYN products are currently sold at retailers including Kroger, Publix, Target, Walmart and Whole Foods Market.
Founded in 2017, OWYN sells a range of plant-based protein shakes that are top nine allergen free and sweetened with monk fruit; the company sells four shake lines – including Pro Elite, High Protein Complete and Coffee Protein – as well as two protein powder lines. According to Tanner, the company sees a potential to capitalize on numerous synergies and share resources between brands, including collective R&D expertise.
“OWYN reaches a new, incremental consumer segment which strengthens our category leading presence with retail customers,” Tanner said in the release. “We are confident our go-to-market capabilities will accelerate profitable growth through accelerated distribution gains, increased household penetration and leveraging our cost-efficient supply chain.”
According to Tanner, the company expects OWYN to reach $120 million in net sales this year, spanning both measured and natural channels. The company also has a strong ecommerce business.
The Simply Good Foods Company has been steadily growing its portfolio of nutrition-based products over the years. The publicly traded company was formed via a SPAC merger in 2017 with Conyers Park Acquisition Corp. and Atkins (NCP-ATK Holdings). In 2019, it made its first acquisition – buying Quest Nutrition for $1 billion – and has steadily expanded both brands with new innovations and into new categories. OWYN marks the third addition to SGFC’s portfolio.
“This transaction is a continuation of our mission as Simply Good Foods is also committed to providing its consumers with quality products focused on high protein, minimal sugars and low levels of net carbohydrates,” said Oliveri, in a press release. “I’m extremely proud of everything the OWYN team has accomplished in establishing a $120 million dollar brand in such a short time.”
